Cost efficiency is achieved when the MPP of a worker relative to the worker's wage is the same for all workers.
Answer the following statement true (T) or false (F)
True
The most cost-efficient factor of production is the one that produces the most output per dollar; therefore the combination of workers will be most efficient when the MPP of a worker relative to the worker's wage is the same for all workers.
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Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived, he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve's response to the decrease in the price of hamburgers is best explained by
A. the price effect. B. a rightward shift in the demand curve for hamburgers. C. the substitution effect. D. the income effect.
The t-statistic has the following distribution:
A) standard normal distribution for n < 15 B) Student t distribution with n–1 degrees of freedom regardless of the distribution of the Y. C) Student t distribution with n–1 degrees of freedom if the Y is normally distributed. D) a standard normal distribution if the sample standard deviation goes to zero.
Markets reduce transactions costs
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Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Marco's consumer surplus from the purchase is
A) $5. B) $60. C) $140. D) $200.